First Gen Corporation is planning to raise about P15 billion through a stock rights offering, marking the first major capital raising activity in the local stock market since the start of the global economic crisis.

In a disclosure to the Philippine Stock Exchange (PSE) Tuesday, FGen said it believes that the rights offering will strengthen the company’s balance sheet. The proceeds of the rights offering will be used to provide additional liquidity to manage the company’s debt position and for other general corporate purposes.

FGen said it also believes that the rights offering is equitable fund-raising option because existing eligible shareholders will have the opportunity to subscribe their pro-rata shareholding in the company and thus not be subject to dilution.

“Allowing existing eligible shareholders to participate in a non-dilutive fundraising exercise by way of a rights offer was among the principal considerations of the equity financing transaction,” the company said.